Government Will Not Sell Its Shares In AGC -minister

Ghana's finance minister has said the West African country is not planning to sell any of its 20 percent stake in Ashanti Goldfields Co Ltd now, despite reports to the contrary.

Finance Minister Yaw Osafo-Maafo said in May that the government may sell some of its stakes in listed companies to reduce its domestic debt.

At the time he said the government may sell Ashanti shares, though ``We'll definitely not offload everything in Ashanti. If for nothing else, for sentimental reasons we'll keep some of the shares''.

But a statement signed by Osafo-Maafo seen by Reuters on Saturday said there was no intention to sell any shares now.

``Rumours are circulating to the effect that government has put up for sale its shares in Ashanti Goldfields Company,'' said the statement, dated July 19. ``This is not correct. The government has no intention of selling its shares in AGC now.''

Osafo-Maafo noted in May that Ashanti's share price was ``not very attractive''.

The shares have been punished since massive hedge-book losses in 1999, after which Ghana's previous government opposed a takeover with UK-based Lonmin Plc, causing it to withdraw its $7 per share offer.

U.S.-listed shares in Ashanti have not topped $4 since then, and fell to lows around $1.50 last year. They closed at $3.63 on Friday.

Pressure has been growing for the government to drop its ``golden share'' in Ashanti which has no monetary value but allows it to override board decisions giving it a veto over mergers.